Where to Start when you Wish to Invest in Cryptocurrency
Cryptocurrencies have grown in value in recent times. This has raised the number of interested investors in the market. But most of them have no idea where to start. Its mystery also adds to the confusion many of them express. Here is a guide that shall help you learn how to trade in Bitcoin and other forms of cryptocurrencies.
You need to start by choosing a cryptocurrency exchange. There are many out there, each with its pros and cons. You need to assess them in terms of fees and purchase options, supported coins, security, as well as liquidity. These are critical to any exchange you are contemplating. It is important you get one with favorable fees. The more the coins trading there, the better the chances of making profits. The security is also critical. You should see the implementation of powerful security features, like secure passwords, two-factor authentication, offline cold storage for most of your funds, and professional grade encryption.
It shall thus be time to create a wallet. This is where you will jeep your cryptocurrency safe. As much as there is a provisional wallet when you pick an exchange, this does not mean you leave your currency in there. The best place has always been your personal wallet. You need to take care of that private key. That is what you use to transact safely. All the amounts you do not intend to trade with should be stored offline. You need to then keep that info secure at all times. Should you lose the offline info, you will have permanently lost all that Bitcoin. There are hardware storage options for you to go with. You can click here to find out more about them.
You should now proceed to buy your first Bitcoin. You need to first fund your wallet. There are choices you can make in this. There are ways you can use your credit card or bank account to make the purchase. You can then move them to your personal wallet of the trading wallet at a larger exchange.
You are now ready to trade and sell Bitcoin. You should have a plan on how you intend to do so, and the discipline to do so. You may, for instance, avoid the temptation to put more than 5% of your total portfolio on a single investment. This is how you keep your losses down should there be a poor trade.
You should always keep the investments to figures you can afford to lose. Investing always comes with plenty of risks. The ups and downs common in other markets are here as well. You need to keep the trading amounts conservative.
There are articles on this site you can refer to for investment advice.